Bitcoin Price Analysis: BTC/CNY Started Range Trading
Bitcoin price after a minor upside move against the Chinese Yuan and the US Dollar, started trading in a range. The BTC/CNY pair is ranging with resistance near 6390.
There is a channel consolidation pattern formed on the hourly chart of BTC/CNY (data feed via BTCCHINA) with support at 6325 and resistance near 6390.
Bitcoin Price Resistance
There was a slight downside move in Bitcoin price against the Chinese Yuan until it found support near 6160. The BTC to CNY started to trade higher later, and somehow managed to move back above the 6200 resistance area.
The price also moved above the 100 hourly simple moving average at 6320. Moreover, there was a close above the 50% Fib retracement level of the last decline from the 6400 high to 6160 low. It opened the doors for more gains, and the price traded close to the last swing high of 6400.
It traded as high as 6390 before starting a downside move. The price traded lower, and corrected towards the 23.6% Fib retracement level of the last wave from the 6160 low to 6390 high where it found support.
The price remained above the 6320 support, and currently formed a channel consolidation pattern on the hourly chart of BTC/CNY (data feed via BTCCHINA). It has a support at 6320, and a resistance near 6390.
So, the price may continue to trade in a range in the near term before it starts to make a major move. The chances of an upside move are a lot more since the indicators are on the positive side.
The hourly RSI for BTC/CNY is just below the 50 level and heading north, but there is a lack in momentum for the BTC bears below the 6340-6320 support.
Chart Source – TradingView.com and data feed by BTCCHINA